Sangam India Q2: consolidated PAT up 131% YoY to ₹53.4 Cr on lower tax, wider margins

Sangam India's consolidated PAT for the quarter ended September 2026 came in at ₹53.40 Cr, up 130.9% YoY and 30.2% QoQ, on revenue of ₹1,045.32 Cr (+32.96% YoY, +21.50% QoQ) — consolidated is the primary basis here and standalone (PAT ₹51.45 Cr, revenue ₹1,030.20 Cr) tells the same story; the ~3.8% gap between the two is fully accounted for by subsidiary Sangam Ventures' ₹1.95 Cr quarterly profit, not a divergent core trend. Net margin expanded to 5.08% of total income from 2.95% a year ago and 4.73% last quarter, while basic EPS rose to ₹10.63 from ₹4.60 YoY and ₹8.16 QoQ.

The margin bridge has two distinct legs. Operating profitability (PBT before exceptional items) nearly doubled YoY to ₹69.85 Cr from ₹35.74 Cr, roughly tracking the 33% revenue growth with some operating leverage, but a meaningful share of the PAT outperformance came from tax: the effective tax rate fell to 21.7% this quarter from 32.1% a year ago and 25.6% last quarter. Had the YoY tax rate held flat, PAT growth would have been closer to 100% rather than 131% — still strong, but the headline overstates the pace of the underlying operating improvement. Sequentially, PBT before exceptional items grew only 23% QoQ against a 21.5% revenue gain, with higher depreciation (₹26.26 Cr vs ₹25.66 Cr) and finance costs (₹30.49 Cr vs ₹29.83 Cr) from ongoing capex keeping EBITDA margin roughly flat-to-down QoQ even as the tax-rate drop pushed PAT margin higher.

The stock went into the print at ₹633.25, down 1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Recurring ₹1.66 Cr exceptional item (sweat-equity amortisation) booked again, unchanged from every comparison period — not a swing factor

We found no analyst consensus or brokerage preview for this quarter (coverage on the stock is thin, with no submitted street estimates), so vsStreet is unknown rather than inferred. Against management's own April 2026 aspiration to double FY27 PAT off FY26's ₹82.60 Cr base, the company is running ahead of pace: H1 FY27 consolidated PAT of ₹94.42 Cr already exceeds the entire prior full year, implying H2 only needs to add ~₹71 Cr to hit the doubling target. No separate press release or MD&A beyond the board-outcome cover letter was provided with this filing. During the quarter the company also allotted 18 lakh convertible warrants to promoters (₹100 Cr total, 25%/₹25 Cr received now) to fund the stated backward-integration and capacity capex, and separately clarified that a trading-volume surge in late September was market-driven rather than insider-linked — neither item moves this quarter's P&L but both are relevant context around the print. A ₹4 Cr fire-related loss at the spinning division (October 1) falls in Q3 FY27, after this quarter's close, and is not reflected in these numbers.